Pete Pachal, a seasoned news editor and author of The Media Copilot newsletter, dives into the compelling dynamics between AI and the publishing industry. He discusses the groundbreaking Deepseek model from China and its implications for the global media landscape. The conversation also highlights the challenges publishers face in adapting to basic AI applications, the evolving role of AI in journalism, and how user experiences in search are shifting. Pachal warns of potential misjudgments in the emerging AI market and emphasizes the need for balance between human authenticity and technological advancement.
The introduction of DeepSeek could democratize AI access for smaller publishers by significantly reducing operational costs compared to American models.
Many news professionals currently utilize basic AI functionalities, indicating a gap between AI's potential and its actual integration into journalism.
The shift towards agentic AI and personalized news consumption is likely to redefine publishing roles and diminish brand loyalty among traditional media outlets.
Deep dives
The Impact of DeepSeek on AI and News
The introduction of DeepSeek, a new Chinese AI model, is seen as a potential game changer in the media industry, primarily due to its significantly lower operational cost compared to US models. With reported costs of approximately $5.6 million to develop versus the billions spent on American equivalents, DeepSeek could enable smaller publishers and media outlets to harness AI technologies that were previously financially unattainable. The discussion raises concerns about the ramifications of this shift, particularly relating to technological competition between the US and China and the implications of an open-source model that could potentially allow unrestricted access to data manipulation and bias in generative outputs. As AI systems like DeepSeek gain ground, traditional publishers may face increased pressure on their economic viability and operational efficiencies as they strive to keep pace.
Challenges of AI Integration in Newsrooms
Despite the hype surrounding AI, many news professionals find themselves still experimenting with basic functionalities, sticking to rudimentary uses rather than fully integrating advanced AI technologies into their workflows. Aspects such as efficient content creation or targeted audience engagement seem yet to materialize, casting doubt on when and how AI can be implemented meaningfully. Key players in the industry have noted that for most journalists, the current AI tools do not significantly enhance their productivity or the depth of reporting. Notably, the conversation suggests a gap between the potential of AI and its actual application, indicating that the transformative effects of AI on daily operations in newsrooms remain largely unrealized.
Understanding Agentic AI and Its Implications
Agentic AI, or AI systems capable of performing tasks autonomously, presents both opportunities and challenges for the publishing industry. Although the promise of AI systems conducting tasks such as booking flights or providing tailored news updates could revolutionize user experiences, doubts linger regarding their efficacy compared to human capabilities. Early encounters with these AI tools often lead consumers to prefer traditional methods, as initial iterations typically lack seamless functionality, making DIY approaches seem preferable. If fully developed, agentic AI could redefine publishing roles, blurring the lines between content creation and operational management as tasks become automated.
The Role of AI in Publishing Economics
Publishing dynamics are changing as AI continues to disrupt traditional economic models, pushing for a reassessment of how content is valued and monetized. With the emergence of AI-generated content and summarization engines, publishers question how to maintain a viable business model that ensures fair compensation for news creation amidst the possibility of AI producing similar informational outputs. The challenges are especially relevant for smaller, less influential companies that may struggle to negotiate favorable partnerships compared to established industry leaders. The conversation around licensing deals and potential economic frameworks emphasizes the urgency for publishers to adapt to these technological shifts while safeguarding their financial interests.
Future Trends in AI and Consumer Interaction
As AI continues to evolve, the manner in which consumers engage with news content is also transforming, with a notable shift towards personalized consumption experiences. The rise of individual creators and platforms that allow users to curate their own news feeds is indicative of a larger trend away from traditional sources. In this context, innovations like Google’s Notebook LM represent a future where users can obtain custom summaries tailored to their interests, improving the relevance of information they receive. Ultimately, as people become accustomed to AI-driven interactions, the brand loyalty seen with established publishers may diminish as audiences seek out more personalized, efficient, and accessible methods to consume their news.
This week, I'm joined by Pete Pachal, a publishing veteran who writes The Media Copilot newsletter that focuses on the intersection of the news business and AI. Pete and I discuss the recent breakthrough with Deepseek, and what it means beyond Silicon Valley and the stock market. We also get into how publishers are adapting to AI, why many of the product use cases are fairly basic to date, and how news consumption is likely to change as agentic AI takes off.
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